Also, consumption of palladium in cell phones and computers and jewelry should further provide a boost to the demand for the metal, reports Zacks.
A supply deficit is also on the horizon as a labor dispute has been ongoing in South African mines. Production cuts have been made and many palladium mines have become unprofitable in the region. Furthermore, stockpiles in Russia are dwindling leading to the possibility of a palladium shortage not seen since 2000.
ETF Securities Physical Palladium Shares
Tisha Guerrero contributed to this article.